Delivery firm Ocado has listed a number of conditions and targets that could prompt Morrisons to break its contract with the firm that include failure to provide adequate service levels.
Ocado has posted a 60-page document on the stock exchange that lists the 'termination rights'
and targets relating to their joint venture Last Mile Developments.
Although academic at present, the contract includes obligations from both Morrisons and Ocado on targets that need to be achieved that also include provision of consistently up-to-date technology. Morrisons also has a number of obligations including the achieve sales of £100 million in three years and £300 million in five years.
The 60-page document, which can be found here, also lists a number of 'adverse' impacts of the agreement that include the potential commitment of management time to the Morrisons agreement and the potential impact of a takeover of either firm.
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